Crude Check: Set to consolidate
Key levels are ₹7,400 and ₹8,000
Oil prices experienced a rally last week, with Brent crude oil futures on the Intercontinental Exchange surging by 5.9 per cent and domestic crude oil futures rising by 6.1 per cent. Brent crude futures broke the $86 mark early last week but struggled to surpass the $91 resistance level, which could potentially obstruct the upward trend in the short-term.
The contract is expected to consolidate between $83 and $91, with the breach of this range determining the next trend. A breakout above $91 could propel the contract to $98 and $100, while a drop below $83 might drive it down to $78 and $75. Brent crude futures (Sep) also managed to break the resistance at ₹7,500 but failed to break the ₹8,000 resistance level, leaving no room for a bullish run this week.
The price is likely to remain between ₹7,400 and ₹8,000 in the near-term. A breakout of ₹8,000 could trigger a rally to ₹8,600, while a failure to uphold support at ₹7,400 might see the price slide to ₹7,000. The suggested trade strategy is to refrain from trading as the contract might remain stagnant.
Written by urgent.news from Hindu BusinessLine's reporting — not their text. Machine-written — may contain errors; check the original before relying on it.
